IGO (IGO) H2 2024 earnings summary

Executive summary

• FY24 featured significant change, including leadership renewal, portfolio shifts, and operational challenges, alongside improved safety and asset performance.

• Safety performance improved, with TRIFR reduced to 10.4, a 35% year-over-year reduction, reflecting strong leadership and workforce engagement.

• Greenbushes delivered 1.38Mt production at AUD 330/t cost, maintaining 85% EBITDA margins despite market volatility.

• Nova and Forrestania generated AUD 331M free cash flow; Forrestania mining to cease soon, with closure and rehabilitation planned.

• Corporate team and operating model reshaped, including workforce reductions and a refreshed strategy focused on battery metals and operational excellence.

Financial highlights

• Underlying NPAT reached AUD 319M for FY24, a 79% year-over-year drop.

• Revenue declined 18% year-over-year to AUD 841M.

• Final dividend of AUD 0.26/share, total AUD 0.37/share for the year, equating to AUD 280M returned to shareholders.

• Cash balance at year-end was AUD 468M, a 40% decrease from the prior year.

• Corporate liquidity post-dividend payout is close to AUD 1.2B.

Outlook and guidance

• Strategy session scheduled for September 12 to detail future direction, with continued focus on battery materials (lithium, nickel, copper).

• FY25 guidance excludes CGP3, which is expected to start in Q3 of next calendar year.

• Exploration spend guided to AUD 50-60M in FY25, with a run rate below AUD 50M from FY26.

• Focus for FY25 includes improving safety, supporting Greenbushes and Kwinana performance, and executing refreshed strategy.

• Continued emphasis on operational excellence at Nova and value creation from battery metals portfolio.